Fuel oil import has declined as its consumption by commercial vehicles has come down due to frequent strikes in the recent months and power cuts have been fewer.
Economists say the government has to spend less on fuel import, thus creating an opportunity to save huge foreign currency.
According to the state-run oil supply company Bangladesh Petroleum Corporation (BPC), the country has to import seven to eight lakh metric tonnes of crude and refined fuel oil less than the usual demand in the current fiscal.
A Bangladesh Bank data shows the BPC opened letters of credit (LCs) for import of fuel worth Tk 271.12 crore during July-February period of the current financial year, which is 13 percent less compared to the same period last fiscal.
LCs were opened for import of fuel oil worth Tk 335.7 crore during July-February period of 2011-12 fiscal.
BPC Chairman Yunusur Rahman told bdnews24.com the demand of diesel oil had slipped because of frequent shutdowns called in the country by various political groups.
He said, “According to us, the country needs 12,000-13,000 tonnes of diesel everyday, which gets reduced to 6,000 tonnes if frequent strikes take place.”
The demand of petrol and octane, along with diesel, also saw a decrease as the transport vehicles, including buses, trucks and steamers, did not ply regularly.
He believed the reduction in load-shedding also added to the lack of demand for diesel used in home generators and irrigation pumps.
A BPC data shows, the country had to import 5.2 million tonnes of fuel in 2011-12 against the target set at 4.8 million tonnes due to excessive demand of diesel and furnace oil from the privately-owned rental power plants.
The BPC official feel, import of fuel could come down to 4.5 million tonnes from the targeted 5.8 million tonnes in the current fiscal.
Yunusur said, “We have already cancelled some contracts for import of oil.”
Economist Zaid Bakht said the economy would get a little boost on account of decreased government expenditure on fuel.
Zaid, Research Director at the Bangladesh Institutes of Development Studies, told bdnews24.com, “The government has to struggle a lot every year to manage subsidy for the fuel sector. But, it will have to spend less this fiscal on account of reduced fuel import and frequent increase in oil prices.”
“Decline in import of fuel would save foreign currency, and the government can reduce borrowing from the banking sector,” he felt as it would increase liquidity inflow in the private sector, thus making a positive impact on industrial sector and economic growth.
Source: Bd news24
